Vijay Sankeshwar, the chairman of Indian firm, VRL Logistics, has denied reports in the country's press linking the company to a proposed new regional airline. The announcement this week sent VRL's shares down almost 20% necessitating the chairman's rebuttal.
In a filing to the Mumbai Stock Exchange, Sankeshwar said that while VRL was not involved in the project, he was and only in his personal capacity.
"I wish to clarify that the proposed entry into the airline business is a personal investment and at no point do we anticipate VRL's balance sheet being used for the venture," he said. "However, I would like to reiterate that my personal investment plans on the regional airline business are still at a very premature stage and a proposal that I am evaluating."
Sankeshwar's plans reportedly focus on the establishment of a carrier in Bengaluru International to serve neighbouring towns and cities such as Bellary, Hubli, Chennai, Tirupati, and Coimbatore. Bangalore is currently home to two other regional operators - start-ups FlyEasy (Bengaluru International) and Air Pegasus (Bengaluru International), the latter already operating.
Sankeshwar and his son, Anand Sankeshwar, will put about INR13 billion (USD193 million) into the venture over the next three years, investing INR3 billion (USD44.5 million) in equity and raising debt for the balance amount.
